** Thanks to readers who pointed out our goof yesterday:
In the summary of the Amy Harmon article in the NYT we wrote that "29
million households USE cable modem or DSL service" the number is actually
way below that, around 1 or 1.5 million. The article acutlly states that
operators/telcos only have the ABILTY to offer these service to 29 million
homes (23 million for cable modems, 6 million for DSL).**
CONTENT
What If You Couldn't Trust The New York Times (OJR)
Intel E-Mail Ruling Raises Free Speech Questions (CyberTimes)
Entertainment Media Taken to Task by Study (ChiTrib)
ADVERTISING
More Doors Closing to Cigarette Advertising (ChiTrib)
COMPETITION
Hope for a Political Accord On Telecom Merger Fades (WSJ)
Microsoft Says AOL Deal Undercuts Antitrust Case (WP)
Signal Getting Clear for Cell Phones (ChiTrib)
Until Cable Evolves, AT&T to Resell Phone Service (ChiTrib)
PRIVACY
Intel Goes to Battle as Its Imbedded Serial Number Is Unmasked (NYT)
Web Surfers' Fears Prompt Privacy Seals (NYT)
INTERNET
Net Has Music Giants Singing Wary Tune (WP)
U.S. Panel Urges Wariness On Internet Health Sites (SJ Merc)
Nettrends: The Real E-Business Is 'Entertainment' (SJ Merc)
Dell Web Site Targets Latin America (SJ Merc)
BROADCASTING
NBC Offers Buyouts To 20 In Affiliate Relations Unit (NYT)
Kurds Are Determined To Restore TV Station Shut By The British (NYT)
ARTS
Director's Futuristic Agenda Keeps Art Center On Edge (CyberTimes)
CONTENT
WHAT IF YOU COULDN'T TRUST THE NEW YORK TIMES
Issue: Journalism/Content
The New York Times' agreement to post Barnes & Noble "buy" buttons next to
its online book reviews should continue to raise questions about the
relationship of news content-providers and e-commerce companies. However,
much of the initial criticism has died out and the news industry has largely
followed the Times' lead into e-commerce. Content from The New York Times
recently brings the relationship into serious question. In one remarkable
35-day stretch in February and March, the Times ran five articles and two
opinion columns, effectively sullying the reputation of Amazon.com, Barnes
and Noble's biggest competitor. In only one of the articles did the Times
disclose its influential agreement with Barnes and Noble. Nancy Nielsen of
the Times said there is no reason to question the impact of the Barnes &
Nobel business relationship on the paper's coverage. Bruce Oakley of the
Arkansas Democrat-Gazette agrees. "A Web books section with book site ad or
even a link to an e-bookstore is not very different from a newsprint sports
page with an ad for a sporting goods store." Author's conclusion: If The New
York Times' coverage of Amazon -- and its routine lack of disclosure of the
Barnes & Noble agreement -- is anything to go by, the top news organizations
still have more questions to answer about exactly how their e-commerce
relationships will not be allowed to erode confidence in their coverage.
[SOURCE: Online Journalism Review, AUTHOR: Matt Welch]
(http://www.ojr.org/)
INTEL E-MAIL RULING RAISES FREE SPEECH QUESTIONS
Issue: Free Speech
A California judge ruled that a former Intel employee must stop sending bulk
e-mail messages to current company employees. Kenneth Hamidi, who was
dismissed from Intel in 1995, has sent messages to up to 30,000 Intel
employees at once, claiming that his e-mailing is comparable to holding "a
megaphone and standing on a tree stump and giving a speech to the public."
But Judge John Lewis disagreed. "The mere connection of Intel's e-mail
system with the Internet does not convert it into a public forum," wrote
Lewis. Since the system is private property and cannot be considered a
public forum according to Lewis, then it's not a venue in which speakers
warrent First Amendment protection. Some free speech advocates, however,
like Ann Brick of the American Civil Liberties Union, are disturbed by the
decision. "It's troubling to us that there's an injunction that essentially
silences a speaker," said Brick.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels]
(http://www.nytimes.com/library/tech/99/04/cyber/articles/29intel.html)
ENTERTAINMENT MEDIA TAKEN TO TASK BY STUDY
Issue: Media Content
The Office of National Drug Control Policy and the Department of Health and
Human Services released a study yesterday about the frequency and nature of
substance use in entertainment media. The $400,000 study looked at 200
movies (with ratings from G to NC-17) and the lyrics of 1,000 songs. In 98%
of the top movie rentals and 27% of the most popular songs, people were
depicted using drugs, drinking or smoking. Fewer than half of these movie
scenes and songs mentioned the downside of such activity. "We do not suggest
that we want to dictate the message. Drugs, alcohol and tobacco are a
reality of American life. They should be part of the art form of the
entertainment world," said Barry McCaffrey, drug control policy director for
the Clinton administration. "But we are suggesting they need to be tied to
the consequences that are realistic, given our experiences in American life."
[SOURCE: Chicago Tribune (Sec 1, p.15), AUTHOR: Associated Press]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904290202,00.html)
See also:
VIOLENCE, MORALITY AND ARTISTS' OBLIGATIONS
Issue: Content
[SOURCE: Chicago Tribune (Sec 5, p.1), AUTHOR: Sid Smith, Art Critic]
(http://chicagotribune.com/)
ADVERTISING
MORE DOORS CLOSING TO CIGARETTE ADVERTISING
Issue: Advertising
In the '60's, tobacco companies spent 7 out of every 10 ad dollars on
broadcast advertising. When TV and radio tobacco ads were banned in 1971,
the companies shifted to billboard and print ads. Last week, a ban on
billboard ads went into effect as part of a tobacco settlement with states.
And this week, the New York Times announced it will refuse tobacco
advertising. Will magazines follow suit? Jones predicts not as tobacco ads
mean big money for magazines. Tobacco ad spending at five magazines alone
reached $130 million last year. Mark Hanzlik, executive director of the
Alternative Weekly Network, an advertising representative for the papers,
said about 70% of the alternatives' national advertising comes from tobacco,
and that figure is increasing. Hanzlik said he does not expect any change in
advertising policies regarding tobacco. As magazines become the most
prominent advertiser for tobacco companies, political pressure may build to
end ads there as well.
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Tim Jones]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904290177,00.html)
COMPETITION
HOPE FOR A POLITICAL ACCORD ON TELECOM MERGER FADES
Issue: International/Competition
The prospects a Deutsche Telekom/Telecom Italia merger is being thrown into
question as the governments struggle to reach an agreement. Germany is
refusing to give into Italy's demand that officials of the German
government, which still controls a 72% stake of Telekom, renounce their
voting rights on the supervisory board of the new company. The Italian
government is resistant to let the recently privatize company fall back into
state-controlled hands. Telecom Italia's shareholders have 21 days in which
to approve a bid from rival Olivetti, which could occur before a political
accord is reached between the two European Governments.
[SOURCE: Wall Street Journal (A19), AUTHOR: Willaim Boston and Deborha Ball]
(http://wsj.com)
MICROSOFT SAYS AOL DEAL UNDERCUTS ANTITRUST CASE
Issue: Antitrust
Microsoft got support for its contention that the merger of Netscape
Communications and America Online undercuts the government's antitrust case
against the software giant. Netscape's former Chief Financial Officer Peter
L.S. Currie was grilled by Microsoft attorneys yesterday in Washington, DC
on the secret negotiations. He said investment bankers for Netscape told AOL
executives the deal would be an "industry-defining transaction" that could
provide "an improved ability to compete" with Microsoft. Also almost 10,000
pages of transcripts of depositions taken earlier in the case were released
yesterday.
[SOURCE: Washington Post (E1), AUTHOR: Rajiv Chandrasekaran]
(http://www.washingtonpost.com/wp-srv/business/feed/biztop925380169823.htm)
See also:
NETSCAPE EXEC QUESTIONED ON MOTIVES FOR AOL DEAL
[SOURCE: San Jose Mercury News, AUTHOR: Laura Maggi]
(http://www.mercurycenter.com/svtech/news/indepth/docs/netsca042999.htm)
See also:
PRIVATE ANTITRUST SUITE HIGHLIGHTS DANGERS MICROSOFT MAY FACE
Issue: Antitrust
Caldera, a Utah-based software company, has filed a suit charging Microsoft
with engaging in antitrust practices that damaged the viability of a
competing operating system nearly a decade ago. According to Caldera's
claims, Microsoft illegally pressured PC makers not to use Caldera's
operating system, which rivaled Microsoft's MS-DOS. Microsoft officials
dismiss the case as merely an attempt to embarrassthe company.
[SOURCE: Wall Street Journal (B6), AUTHOR: John Wilke, Keith Perine, and
David Bank]
(http://wsj.com)
SIGNAL GETTING CLEAR FOR CELL PHONES
Issue: Wireless
A growing trend may result in more voice traffic over wireless phones than
wire-line phones within 2 or 3 years. Better quality and cheaper service
(including calling packages) are making the mobility of wireless phones more
attractive. Where analog wireless phone users usually left their phones
turned off unless they were making call -- in part, to conserve battery
power -- new digital users leave there phones on all day and receive many of
their calls on them. Andrew Cole, chief of the wireless practice at
Renaissance Worldwide, a Boston-based consultancy, said that in some
European countries, wireless companies already carry more voice
conversations than traditional hard-wired phone companies. "Most large phone
companies now own wireless service, and with good reason," Cole said. "The
wire-line is fast becoming a data pipe and wireless is becoming the main
medium for voice."
[SOURCE: Chicago Tribune (Sec 3, p.1), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904290175,00.htm)
UNTIL CABLE EVOLVES, AT&T TO RESELL PHONE SERVICE
Issue: Competition
AT&T plans to offer telephone service over upgraded cable facilities, but
while those upgrades are being made, the company will first resell service
from local Baby Bell carriers. "Cable upgrades are multiyear projects," said
AT&T President John Zeglis. "We need resale to get into the local market and
recruit customers while we're working on cable. But we'll only do resale
where it's profitable." AT&T's focus is on unbundled service, a form of
resale with deep discounts.
[SOURCE: Chicago Tribune (Sec3, p.3), AUTHOR: Jon Van]
(http://chicagotribune.com/textversion/article/0,1492,SAV-9904290206,00.htm)
PRIVACY
INTEL GOES TO BATTLE AS ITS IMBEDDED SERIAL NUMBER IS UNMASKED
Issue: Privacy/Information Technology
One man's virus is another's diagnostic tool. The issue of security versus
privacy rages as a result of Intel embedding a serial number on its new
Pentium III processor chip. Intel said it was placed there to provide
security for the machine. Privacy groups objected, and Intel responded by
distributing software that enabled owners to hide the number. The next step
belonged to Zero-Knowledge Systems of Montreal. A researcher at the small
company discovered a way to make the number visible again by inserting a
command in the BIOS chip -- and without the owner's realizing it. After
Zero-Knowledge placed a program on its Web site demonstrating the
vulnerability, Intel complained loudly, calling it "hostile code." Symantec,
which produces anti-virus software, included the Zero-Knowledge software in
its continually updated list of dangerous programs. "This wasn't a virus,"
said Austin Hill, president of Zero-Knowledge. "It was simply a
demonstration of a software flaw." And Hill contends a serial number is a
bad way to protect someone.
[SOURCE: New York Times (C1), AUTHOR: John Markoff]
(http://www.nytimes.com/library/tech/99/04/biztech/articles/29chip.html)
WEB SURFERS' FEARS PROMPT PRIVACY SEALS
Issue: Privacy
Three main seal programs -- Truste, CPA Webtrust, and BBB Online -- appear
on Web sites that have been found to meet the certain standards set by each
of the programs. The business, accounting, and consulting firms that manage
the seal systems say they are the best way to protect consumers without the
need of Federal regulation. Although some seal managers have more stringent
requirements than others to earn the seals, there is basic criteria that all
Web sites must meet:
*Keeping a privacy policy posted online
*Disclosing what personal information they collect and how it is collected
*Providing customers the chance to opt out of programs that request personal
information, and
*Securing the databases to prevent hackers from accessing personal
information.
Consumer-advocacy groups are wary of what the seals actually mean. They
stress that they do not mean that a site won't sell your information to another
company. Companies might have a broad concept of meaning of "informed
consent" . Some consumer groups say just telling consumers what the company
may do with your information is not privacy -- it